Problem 2-4B
The trial balance of Don Kelso Co. shown below does not balance.
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Each of the listed accounts has a normal balance per the general ledger. An examination of the ledger and journal reveals the following errors.
1. Cash received from a customer in payment of its account was debited for $470, and Accounts Receivable was credited for the same amount.The actual collection was for $740.
2. The purchase of a printer on account for $340 was recorded as a debit to Supplies for $340 and a credit to Accounts Payable for $340.
3. Services were performed on account for a client for $890. Accounts Receivable was debited for $890, and Service Revenue was credited for $89.
4. A debit posting to Salaries Expense of $600 was omitted.
5. A payment of a balance due for $206 was credited to Cash for $206 and credited to Accounts Payable for $260.
6. The payment of a $500 cash dividend was debited to Salaries Expense for $500 and credited to Cash for $500.
Instructions
Prepare a correct trial balance. (Hint: It helps to prepare the correct journal entry for the transaction described and compare it to the mistake made).
Each of the listed accounts has a normal balance per the general ledger. An examination of the ledger and journal reveals the following errors.
1. Cash received from a customer in payment of its account was debited for $470, and Accounts Receivable was credited for the same amount.The actual collection was for $740.
2. The purchase of a printer on account for $340 was recorded as a debit to Supplies for $340 and a credit to Accounts Payable for $340.
3. Services were performed on account for a client for $890. Accounts Receivable was debited for $890, and Service Revenue was credited for $89.
4. A debit posting to Salaries Expense of $600 was omitted.
5. A payment of a balance due for $206 was credited to Cash for $206 and credited to Accounts Payable for $260.
6. The payment of a $500 cash dividend was debited to Salaries Expense for $500 and credited to Cash for $500.
Instructions
Prepare a correct trial balance. (Hint: It helps to prepare the correct journal entry for the transaction described and compare it to the mistake made).
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